International trade has experienced significant developments in recent years, influenced by a number of factors, including changes in policy, technology and geopolitical dynamics. One of the main changes is digital transformation which is changing the way companies do business across borders. E-commerce has become a major driver, with many small and medium-sized companies (SMEs) leveraging online platforms to reach global markets. With the growing use of information and communication technology, accessibility to international markets is increasing. Additionally, shifts in trade policies, including free trade agreements (FTAs), are also influencing the global trade landscape. For example, the Regional Comprehensive Economic Partnership (RCEP) agreement launched in 2022 involves 15 countries in the Asia-Pacific covering around 30% of the world’s population and global GDP. RCEP aims to reduce tariffs and simplify trade, allowing member countries to increase economic connectivity. Sustainability issues are now a major focus in international trade. Many companies and governments are starting to adopt responsible trade practices, such as using sustainable raw materials and reducing carbon emissions. Green trade is receiving increasing attention, including efforts to address climate change and its impact on economic growth. International agreements such as the Paris Agreement provide a framework for countries to collaborate in pursuing this goal. The impact of the COVID-19 pandemic has also opened up many lessons for global supply chains. The resulting disruption is pushing companies to adapt more quickly, seek alternative sources of supply and strengthen supply chain resilience. The concepts of “nearshoring” and “reshoring” are gaining popularity, where companies move factories or resources closer to their primary markets to reduce risk and increase speed of service. Geopolitical conditions, such as tensions between major countries, including the US and China, also have a major impact on international trade. Tariff policies imposed on each other create uncertainty in the market and encourage other countries to seek new opportunities outside established relationships. Economic diplomacy is key to securing access to markets and resources. In the technology sector, developments such as blockchain promise more transparency in international transactions, reducing fraud and increasing efficiency. Hundreds of companies are testing the use of this technology to trace product origins and speed up cross-border payment processes. The adoption of AI technology in trading data analysis is a growing trend. Companies leverage artificial intelligence to identify patterns in consumer behavior, optimize marketing strategies, and improve logistics processes. With the use of big data, companies can adapt their offerings to meet changing market needs. Lastly, the rise of the digital economy provides opportunities for developing countries to engage in international trade. Countries in Southeast Asia, such as Indonesia and Vietnam, are starting to show rapid growth in the e-commerce sector, connecting local producers with global consumers. Attention to digital inclusion is increasing, with various initiatives to increase internet access and digital training for the public. Overall, recent developments in international trade demonstrate a complex evolution that will continue to shape the way countries and companies interact economically.
